—— Boeing Risks Receiving Junk Credit Rating; Barclays Branches Vandalized by Palestine Group; Homeownership Costs Jumps 26%; WeWork Rival to Takeover Former Headquarters; Brookfield Sells India and Korea Properties
1. Boeing Risks Receiving Junk Credit Rating
Boeing, a manufacturing pioneer and key player in the US defense industry with a century of experience in the aviation sector, is now facing the unthinkable possibility of having its debt rating downgraded to junk status.
The aerospace giant is set to report its airplane deliveries for May on Tuesday, with figures expected to disappoint. Investors and analysts are keen to see if Boeing can increase deliveries and generate more free cash flow in the second half of the year to avoid a downgrade.
Rating agencies have pointed to weak aircraft deliveries, an unclear recovery outlook, and a prolonged period of high debt relative to earnings as factors that could lead to Boeing’s rating being cut to junk.
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2. Barclays Branches Vandalized by Palestine Group
More than 15 branches of Barclays bank across England and Scotland have been vandalized by the campaign group Palestine Action. The targeted branches had their windows smashed and paint thrown as part of a protest urging the bank to divest from arms companies that sell to Israel and firms linked to fossil fuels.
Palestine Action reported that branches in Moorgate, Palace Street, Richmond, Croydon, Wellington Road, and Peckham in London were among those targeted. Additional branches affected included those in Glasgow, Exeter, Sheffield, Brighton, Northampton, Bristol, Birmingham, Solihull, Preston, Bury, and Stockport, as well as an office in Edinburgh.
This vandalism was a joint effort with a newly-formed climate change group called Shut The System.
City of London Police confirmed that three men were arrested in connection with the damage to the Moorgate building.
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3. Homeownership Costs Jumps 26%
The cost of owning a home in the US has increased by 26% since 2020, with expenses such as taxes, insurance, and utilities soaring during a period of high inflation.
According to personal finance website Bankrate, the average annual cost for owning and maintaining a typical single-family home, excluding mortgage payments, reached $18,118 in March. This represents an increase of $1,510 per month compared to four years earlier, when pandemic lockdowns began. The calculation is based on Redfin’s March median sales price of $436,291.
“It was really eye-opening to see just how much it costs to maintain a home,” said Jeff Ostrowski, an analyst at Bankrate. “Until you own a house, it doesn’t dawn on you how much money you’re throwing into the house every month and year.”
Bankrate’s analysis included property taxes, home insurance, energy costs, internet and cable bills, and 2% of the sales price for maintenance—expenses that many buyers tend to underestimate.
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4. US Non-farm Payroll Posts Strong Growth
US job growth surged in May, with wages accelerating, leading traders to delay their expectations for Federal Reserve interest-rate cuts.
According to a Bureau of Labor Statistics report released on Friday, nonfarm payrolls increased by 272,000 last month, surpassing all projections in a Bloomberg survey of economists. Average hourly earnings rose by 0.4% from April and 4.1% from a year ago, both higher than the previous report.
However, the unemployment rate, derived from a separate survey, rose to 4% from 3.9%, reaching this level for the first time in over two years.
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5. WeWork Rival to Takeover Former Headquarters
WeWork Inc.’s former New York headquarters has been taken over by coworking competitor Industrious. Industrious announced that it has signed a 10-year agreement to manage office space at Tower 49 in midtown Manhattan, the previous site of WeWork’s headquarters. Industrious will manage approximately 240,000 square feet (22,300 square meters) of space across 16 floors at Kato International’s 12 E. 49th St.
This transition follows WeWork’s recent court-approved exit from bankruptcy, allowing the company to eliminate billions in debt and abandon money-losing leases across its extensive office portfolio.
Industrious operates differently by focusing on management contracts with landlords rather than leasing properties outright. This approach allows Industrious and the landlords to share profits and minimize risk. From 2019 to 2023, Industrious’s revenue has tripled, and the firm has been exploring new locations, including some former WeWork sites.
“We’ve probably considered about 70 takeovers of former WeWork space, and this is one of a very small number we’ve moved forward on,” said Jamie Hodari, Industrious’s chief executive officer.
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6. Longtime Shareholder Approves Musk Pay
One of Tesla Inc.’s longest-standing shareholders, Scottish asset manager Baillie Gifford, plans to vote in favor of Elon Musk’s $56 billion pay package, according to a person familiar with the matter.
The asset manager backs the controversial pay award across its funds because the targets tied to it were highly ambitious and aligned with shareholder returns when they were established in 2018, the person said, requesting anonymity while discussing private information.
Tesla’s shareholders initially approved Musk’s pay package six years ago. However, in January, a Delaware Chancery Court judge invalidated the plan, stating that investors were not fully informed of key details. Tesla is now bringing the pay package before investors for a second vote at this week’s annual general meeting.
Some large shareholders have already expressed opposition to Elon Musk’s $56 billion pay award. Additionally, proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis & Co. have recommended that investors reject the proposal.
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7. Brookfield Sells India and Korea Properties
Brookfield Asset Management has agreed to sell the Conrad hotel in Seoul to ARA Korea REF, a real estate fund, for 415 billion won ($301.6 million).
The $925 billion alternative-asset manager acquired the five-star hotel, part of the International Finance Center property portfolio in Seoul’s financial hub, in 2016, according to a statement released on Monday.
In April, Brookfield and the Investment Corp. of Dubai—a state-owned investment firm—announced the sale of a 49% stake in Dubai’s iconic ICD Brookfield Place tower to a pair of Middle Eastern investors. While the terms of the deal were not disclosed, Bloomberg previously reported the tower could be valued at up to $1.5 billion.
Additionally, the Toronto-based firm sold commercial assets in India at a combined value of $3.5 billion.
Brookfield is targeting $15 billion for its fifth flagship real estate fund and has already collected more than $8 billion for its first close.
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。